“The Austrian investment fund management companies are only marginally invested in Asset Backed Securities (ABS) and Mortgage Backed Securities (MBS), which are those affected by the US real estate crisis,” FMA Executive Director Heinrich Traumüller summarises a current survey conducted by the Financial Market Authority (FMA) of all 24 Austrian investment fund management companies as well as the five real estate investment fund management companies. Furthermore, in compliance with its obligation pursuant to section 84 of the Strafprozessordnung (StPO; Code of Criminal Procedure), the FMA submitted a statement of the facts on suspected criminal offences subject to official prosecution to the public prosecutor’s office in Vienna.
The FMA’s survey found that of the almost 2,300 investment funds offered by the Austrian investment fund management companies only a few are directly or indirectly invested in ABS or MBS. Furthermore, investment volumes in these securities are usually low (under four per cent of the invested assets), and the funds mostly invest in European, good-quality ABS. The Austrian real estate investment fund management companies have no commitments in the US market at all. Of the approximately 4,600 foreign investment funds licensed for distribution in Austria, four were suspended at the time of the survey.
FMA Executive Director Heinrich Traumüller also clarified that “a possible suspension, that is the temporary suspension of issues and the repurchase of shares, is to protect investors, so they do not need to suffer unnecessary losses in crisis situations.”
According to the survey, the Austrian investment fund management companies currently “do not consider further suspensions necessary”. “Only if the crisis continued, if other products were affected as well or if foreign funds were suspended in great numbers would the suspension of individual Austrian investment funds be required,” says Traumüller.
For further information please contact
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106
+43/(0676)/882 49 516